EU Slashes Proposed Tariff on Tesla EVs from China

The European Union has significantly reduced its planned extra tariff on Tesla electric vehicles imported from China, following further investigations requested by Tesla. The EU also proposed revised punitive duties on other Chinese-made EVs. China's commerce ministry has expressed strong opposition to these findings and vows to protect Chinese firms.

The European Union has drastically lowered its proposed additional tariff on Tesla electric vehicles imported from China, the bloc's executive revealed on Tuesday. The decision followed further investigations prompted by Tesla's request. The European Commission also updated its proposed punitive duties on imports of Chinese-made EVs.

Tesla's new reduced extra rate is now set at 9%, down from the 20.8% indicated in July. Some Chinese companies in joint ventures with EU automakers might also benefit from lower planned duties. This decision is part of the EU's highest-profile investigation into alleged Chinese subsidies, which has triggered threats of retaliation from Beijing.

China's commerce ministry responded with firm opposition and concern, stating that the findings were based on one-sided EU-determined facts. China has called for practical steps to avoid trade frictions while launching a challenge at the World Trade Organization. The proposed tariffs could become the EU's final measure once the investigation concludes in about two months.

(With inputs from agencies.)